a)
b)
c)
d)
CII Institute of Logistics
PGDSCM & Certificate Programs
Semester-end Examination – June 2011
FUNDAMENTALS OF LOGISTICS
Time: Three Hours
Marks: 100
Part A
Answer all questions (10 x 1 = 10 Marks)
1) The best known inter-model transportation which is an outcome of the
coordination between railways & roadways is called
a) Fishyback
b) Piggyback
c) Trans-Ship
d) Airtruck
2) Two major Logistics Functions includes Procurement Function & Production
Function. What is the third one?
a) Warehousing Function
b) Inventory Function
c) Physical Distribution Function
d) Customer Service Function
3) There are three types of Warehousing alternatives – Private warehouse, Public
warehouse. Which is the third one?
a) Bonded warehouse
b) Contract warehouse
c) Bulk Storage warehouse
d) Cross Docking
4) As a Logistics Head of an organization, you need to focus more on
____________ on your logistics operation
a) efficiency
b) cost
c) cost optimization
d) transit time adherence
5) Four basic features of Logistics Strategy are Reliability, Responsiveness,
Relationship and
Rationalization
Resource planning
Restoring
Regionalization
6) KANBAN is a Japanese word which deals with
a) Elimination of waste
b) Inventory control
c) 2 card system with details of material for pulling to line
d) turn around time
7) Few of the factors affecting shippers decision are
a) Facility cost & Quantity related cost
b) Vehicle related cost & service level cost
c) Inventory cost & Processing cost
d) Fixed operating cost & overhead cost
8) 4 PL activity includes
a) Managing complex supply chain
b) Managing the entire supply chain
c) Outsourcing warehouse service provider
d) Outsourcing supplier for procuring raw material
9) Main objective of Inventory Management is
a) Cost optimization by reducing the buffer stock
b) Increase the efficiency of logistics service provider
c) Reduce the transit time by getting material on time
d) Keep the required stock to avoid line stoppage of production
10) EOQ is related to
a) Inventory management
b) Warehousing management
c) Transportation management
d) outsourcing
Part B
Answer any four (4 x 15 = 60 marks)
1)
What do you mean by Logistics? What are the Objectives of Logistics? Explain
Mission of Logistics.
1
2)
3)
4)
5)
6)
Define Customer Service. What are the factors for evaluating Customer
Service? Discuss the Customer Service Phases. Mention few typical value
added logistical services.
What is Supply Chain Management? What is the objective of SCM? Discuss the
difference between Logistics & Supply Chain Management.
What is Inventory? What are the various types of stock / inventory? Discuss.
Explain the different inventory costs.
Discuss the different modes of transportation. Explain the various factors
which influence transport economics.
What are the functions within the warehouse? Explain economic benefits /
functions of warehouse.
Part C
Case Study
(30 marks)
Dabur commenced its operation in 1884. Today , Dabur is a multilocational –
multiproduct enterprise.
When a Dabur dealer wanted a stocks from any of the company’s 19 branches
across the country, the branch took 6 days to process the order. It then took
almost equal times to dispatch the goods from its godown. Very often,. The
godown did not have the right stocks. Since the goods used to be send by
truck, and transporter wanted full truck loads before they started rolling at
times, the goods would remain at transporter’s godown for a week. Dabur
distributors also used to pay the company through an elaborate system if
vouchers and that too almost never on time.
Similarly, there was little coordination between production procurement and
sales. Neither were Dabur’s forecasting technique precise and it used to be an
annual procedure. Feedback from the company’s sales department would be
discussed with its marketing cell and the annual forecast would be put
together jointly. Again, the branch heads would request for fresh stocks based
on the estimates which were part statistical and part gut feel. This, at times,
led to huge inventory pile-ups. The finished goods inventory cost is Rs. 118
crore and the working capital cycle used to be 160 days against an industry
average of 60 days.
The commercial department of the company looked after all these activities
and prepared six copies of challan – one copy for the department itself, one
copy for the warehouse, one copy for the information cell, two copies for the
branch, and one copy to move with truck.
It was only on 2 November 1988, when the 104 year old Dabur India
reinvented itself. Breaking over a century of tradition, executive powers of
running the company were handed over to Ninu Khanna, an outsider
appointed as CEO, former Marico General Manager (commodities) Shyam
Shankar, as head of Dabur’s purchase and procurement planning cell, and exHLL man G.Kashinath in the central supply chain cell (CSCC).
Dabur began to set right its entire supply chain from the buying of raw
materials to the selling of finished goods at the retailer’s. The objectives of
efficient supply chain management are threefold – one, have the right stocks,
at the right place, at the right time: two, keep inventories down: and three, do
all this with the lowest operational costs.
In fact, Dabur hired consulting firm McKinsey & Co. primarily to fix its internal
processes, which have initially been on supply chain front, spanning the five
aspects of demand forecasting, production planning, logistics, order
processing and procurement planning. The present performance of logistics
and supply chain system is as follows.
Factor
Present Performance
Logistics
Forecasting
Vendors
Inventory
Systematized forecasting method and branch sales
staff encouraged to collect orders from geographical
routes.
A three-monthly rolling forecast is made with firm
productions for one month and for the other two,
tentative. This is also done SKU-wise.
Vendor appraisal systems are being put in place.
Every month, vendors are rated on the four
parameters of cost, quality, delivery and service.
Vendors can be dropped if found unsatisfactory.
Finished goods inventory were already down from 52
production days to 40 days. Indents replaced by
replenishment Planning
model which uses
available information to control both manufacture
and transit of goods to the marketplace.
Answer the following questions:1)
Being the head of CSCC, identify the major logistical problems
associated with Dabur India Ltd.
2)
Suggest a detailed logistics and supply chain system in order to reduce
the replenishment cycle time and working capital cycle.
3)
How can an information technology solution to L&SCM in the
implementation of a new strategy facilitate in the improvement of
productivity and efficiency?
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